Copies of this proposed rule are available upon request to Kris Anderson, Paralegal, Department of Regulation and Licensing, Division of Board Services, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708, or by email at
Kristine1.Anderson@wisconsin.gov.
Analysis Prepared by the Department of Regulation and Licensing
Statutes interpreted
Statutory authority
Explanation of agency authority
The Department of Regulation and Licensing is granted rule-making authority pursuant to s.
227.11, Stats., and is specifically granted rule-making authority pursuant to ss.
458.03,
458.06,
458.08,
458.085,
458.13 and
458.24, Stats.
Related statute or rule
There are no other statutes and rules other than those listed.
Plain language analysis
Changes are being made as delineated to be consistent with “FIRREA" and AQB Criteria, to clarify department references, to clarify certification scopes, to simplify the process for applying for licensure and certification in Wisconsin if licensed in another state or territory, to expand the approved instructors for educational programs and continuing education courses, to clarify credit for such courses, and to expand the rules of professional conduct.
SECTION 1 amends the rule to clarify the meaning of “mass appraisal."
SECTIONS 2, 3, 4, 10, 12 and 16 amend the Notes relating to where applications and information is available.
SECTION 5 creates a rule to simplify the process for applying for licensure or certification in Wisconsin if the applicant is already licensed in another state or territory.
SECTION 6 amends rules to clarify the scope of practice of certified general appraisers and certified residential appraisers.
SECTION 7 amends rules to clarify the requirements for examination.
SECTION 8 amends rules to change the experience requirements.
SECTION 9 creates rules to clarify what standards experience must comply with.
SECTION 11 creates rules to simplify the licensing and certification process for applicants who are licensed or certified in other states or territories.
SECTION 13 creates rules to expand available educational instructors and educational courses and to clarify the granting of credit for such courses.
SECTION 14 repeals and recreates rules to clarify the educational course requirements to become a licensed appraiser, a certified residential appraiser, and a certified general appraiser.
SECTION 15 adds a comma in the first sentence.
SECTION 17 creates rules to expand who is qualified to teach continuing education courses and approval for courses already approved by another state or territory, and clarifies credit for courses that qualify for both continuing education and certification.
SECTION 18 amends the rules of professional conduct to shorten the time to respond to investigation requests and to clarify a reference to state.
SECTION 19 creates rules of professional conduct adding three new circumstances which may be considered unprofessional conduct.
Summary of, and comparison with, existing or proposed federal regulation
Federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA")
The Federal Institutions Reform, Recovery, and Enforcement Act (“FIRREA"),
12 U.S.C. 3331 et seq., (Title XI) was enacted in 1989. Under FIRREA, insured financial institutions and insured credit unions are required to obtain the services of a State certified or licensed appraiser for appraisals conducted in connection with “federally related transactions."
Under FIRREA, the Appraisal Subcommittee of the Federal Financial Institutions Examination Council is required to monitor state appraiser certifying and licensing agencies for the purpose of determining whether a state agency's policies, practices, and procedures are consistent with the federal law. The Appraisal Subcommittee may not recognize appraiser certifications and licenses from states whose appraisal policies, practices and procedures are found to be inconsistent with FIRREA. Before refusing to recognize a state's appraiser certifications or licenses, the Appraisal Subcommittee must provide that state's certifying and licensing agency with a written notice of its intention not to recognize the state's certified or licensed appraisers and ample opportunity to provide rebuttal information or to correct the conditions causing the refusal. A decision of the Subcommittee to refuse to recognize a state's appraiser certifications or licenses is subject to judicial review.
12 U.S.C. 3331 et seq.
In 1997, the Appraisal Subcommittee adopted the
Policy Statements Regarding State Certification and Licensing of Real Estate Appraisers, which all states must comply with. [The Appraisal Subcommittee's Policy Statements are available at:
http://www.asc.gov.]
Appraisal Qualifications
Under FIRREA, the state criteria for the qualifications of
certified real estate appraisers must meet the minimum qualifications criteria for certification established by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation. The minimum qualifications criteria established by the AQB are set forth in the
Real Property Appraiser Qualification Criteria and Interpretations of the Criteria (“Criteria"). The AQB Criteria includes the minimum experience, examination, qualifying education and continuing education requirements that must be satisfied by an individual in order to obtain and maintain a certified appraiser credential. [The AQB Criteria is available on the Internet at
http://www.appraisalfoundation.org.]
Under FIRREA, the states may establish their own qualifications and requirements for licensed appraiser credentials. The states are not obligated to adopt the minimum experience, examination, education and continuing education requirements recommended by the AQB for the licensure of real estate appraisers. However, the Appraisal Subcommittee recommends that all states adopt the AQB Criteria established for the licensure of real estate appraisers.
Comparison with rules in adjacent states
The Federal Institutions Reform, Recovery, and Enforcement Act (“FIRREA"),
12 U.S.C. 3331 et seq., (Title XI) was enacted in 1989. Under FIRREA, insured financial institutions and insured credit unions are required to obtain the services of a state certified or licensed appraiser for appraisals conducted in connection with “federally related transactions."
Under FIRREA, all states, including Illinois, Iowa, Indiana, Michigan and Minnesota, that certify real estate appraisers for purposes of conducting appraisals in federally related transactions must assure compliance with the AQB Criteria. In addition, the Appraisal Subcommittee recommends that all states assure compliance with the AQB Criteria for the licensure of real estate appraisers.
Summary of factual data and analytical methodologies
The board reviewed the current federal statutes as well as the rules in adjacent states. The board determined that the current rules needed to be aligned with FIRREA as well as comply with the AQB Criteria for licensure of real estate appraisers. The board considered the suggestions of the Appraisal Subcommittee and board legal counsel to make changes to the current rules.
Analysis and supporting documents used to determine effect on small business
The proposed changes will have an effect on small business. The rule will have a positive impact on small businesses that would like to bring in a real estate appraiser currently licensed in another state. Instead of verifying all of their reports with Wisconsin, the applicant will now be able to have written verification sent from their state of licensure. The businesses will benefit from the increased efficiency of the licensure process which outweighs the additional cost of requesting the verification.
Additionally, the changes will make it easier for licensed appraisers and trainees to meet their educational requirements. These changes increase the number of approved courses and instructors available to licensed appraisers as well as individuals pursuing their licensure. It also lowers the educational requirements for a licensed appraiser or certified residential appraiser to become a certified general appraiser. These educational changes will make it easier for those seeking licensure or to expand their licensure to do so.
The other proposed changes in the rule clarify or eliminate unnecessary sections of the current rules. Therefore, the proposed changes will have little effect, if not a positive effect, on small business.
Section
227.137, Stats., requires an “agency" to prepare an economic impact report before submitting the proposed rule-making order to the Wisconsin Legislative Council. The Department of Regulation and Licensing is not included as an “agency" in this section.
Anticipated costs incurred by private sector
The department finds that this rule has no significant fiscal effect on the private sector.
Effect on Small Business
These proposed rules were reviewed by the department's Small Business Review Advisory Committee to determine if the rules will have a significant economic impact on a substantial number of small businesses, as defined in s.
227.114 (1), Stats. It was determined that the rules will not have a significant economic impact on a substantial number of small businesses.
The Department's Regulatory Review Coordinator, John Murray, may be contacted by email at
John.Murray@wisconsin.gov, or by calling 608-266-2112.
Fiscal Estimate
Ongoing cost:
These rule changes will increase reciprocal discipline and thus caseloads with the following additional impact to the department:
520 Attorney hours @ $59 per hour = $30,680
595 Paralegal hours @ $33 per hour = $19,635
520 Investigator hours @ $31 per hour = $16,120
520 LTE appraiser hours @ $35 per hour = $18,200
35 Operations Program Assoc. hours @ $31 per hour
= $ 1,085
4 Program Associate Supervisor hours @ $23 per hour
= $ 92
Total ongoing costs: $85,812
Agency Contact Person
Kris Anderson, Paralegal
Department of Regulation and Licensing
Division of Board Services
1400 East Washington Avenue, Room 116
P.O. Box 8935, Madison, WI 53708
Phone: 608-261-2385
Notice of Hearing
Regulation and Licensing
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Department of Regulation and Licensing in sections
15.08 (5) (b),
51.30,
146.82,
227.11 (2) and
440.04, Stats., and interpreting section
440.03, Stats., the Department of Regulation and Licensing will hold a public hearing at the time and place indicated below to consider an order to revise Chapter
RL 24, relating to definitions, duties of brokers, broker disclosure requirements, written proposals, ethical requirements, and educational requirements.
Hearing Information
The public hearing will be held as follows:
Date and Time:
|
Location:
|
February 17, 2011
10:30 a.m.
|
1400 East Washington Avenue
Room 121A
Madison, WI
|
Appearances at the Hearing and Submittal of Written Comments
Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may also be submitted in writing without a personal appearance by mail addressed to the Department of Regulation and Licensing, Division of Board Services, P.O. Box 8935, Madison, Wisconsin 53708 or by email to
Kristine1.Anderson@wisconsin.gov.. Written comments must be received by
February 14, 2011, to be included in the record of rule-making proceedings.
Copies of Proposed Rule
Copies of this proposed rule are available upon request to Kris Anderson, Paralegal, Department of Regulation and Licensing, Division of Board Services, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708, or by email at
Kristine1.Anderson@wisconsin.gov.
Analysis Prepared by the Department of Regulation and Licensing
Statutes interpreted
Statutory authority
Explanation of agency authority
The Department of Regulation and Licensing is granted the authority under s.
452.07, Stats., to promulgate rules to define professional conduct and unethical practices and to establish guidance for the real estate profession.
Related statute or rule
There are no other statutes or rules other than those listed above.
Plain language analysis
This proposed rule-making order clarifies the rules relating to the ability to retain records in an electronic format, updates and clarifies the rules to reflect statutory changes and clarifies licensees' duties. This rule-making also proposes to update the rules for conduct and ethical practices for real estate licensees, and creates discipline for licensees who do not respond to information requests from the board or department. This encourages the submission of requested information during an investigation.
SECTION 1 clarifies the definition of “agency agreement" by removing the statutory reference and adding a definition that encompasses any written agreement where a client authorizes a broker to provide brokerage services. Additionally, the statutory reference included in “brokerage service" is amended to encompass the entire statutory definition of “broker."
